Jio 6 Paise per minute effect on Public and Telecom stocks

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It is known that Jio launched the 6 Paise per minute system for calls to cellphones using other mobile operators recently. This turned into a debate in social media. Public says that the Jio wooed the customers for a while with all the offers and is slowly injecting the policies of minting money.

It seems that the case of Interconnect Usage Charge (IUC) is before Telecom Regulatory Authority of India (TRAI) and they have not yet revealed their decision. But Jio took a step ahead and implemented the IUC. It is known that the Reliance group will get information of government regulations and schemes well in advance before the government actually implements it. This move too might be on the same course.

While public were not that happy with the scheme, the Telecom stocks raised in the markets. Jio, Airtel and Vodafone – Idea stock prices raised after this move from Jio. Investors might have felt that if Jio implemented this, TRAI may take a decision towards this side which will make Airtel and Vodafone – Idea to implement it in near future. If all the Telecom companies implement IUC, the profits for these companies may raise which will be profitable for the investors.

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